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Diesel Price in Tirunelveli

The diesel price is changing each day in Tirunelveli. The publicly-owned fuel retailers such as Indian Oil (IOL), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) in Tirunelveli, a city in the Indian state of Tamil Nadu, will declare the new fuel price regularly. Consumers have to check daily prices before buying. Even minor variations in fuel rates will impact the billing amount. Let’s assume the petrol rate in Tirunelveli today has slid by 10 paise a litre, the billing amount will decrease by Rs.10 if you are buying 100 litres of diesel.

The diesel price today stands at Rs.66.69 a litre in the city. This price consists of both forms of taxes: 1) the central tax, which is levied at Rs.15.33 a litre; and the Value-added Tax (VAT), which is levied by the State Government of Tamil Nadu. Both forms of taxes will vary from time to time. The excised duty has been reduced twice by the Central Government since October 2017. The State Government of Tamil Nadu has not lowered the local tax on diesel like Maharashtra, Uttar Pradesh, Madhya Pradesh and Gujarat recently.

Effect of Dynamic Fuel Pricing on Fuel Prices in Tirunelveli

Today, we have a completely streamlined mechanism for fuel pricing and revision in the country. It is called dynamic fuel pricing. It has been introduced last year to bring to some changes and resolve issues. Unlike before, the fuel prices in Tirunelveli will not be revised twice a month. Instead, it will happen regularly considering the dollar-rupee ratio and crude oil costs. The newly adopted practice gives the Indian fuel retailing sector a competitive edge. In other words, the Indian fuel retailing sector can be aligned to global markets.

In Tirunelveli, the publicly-held oil selling companies retain the ownership of more than 94% of diesel stations. Only 10% of diesel stations are automated. The fully automated diesel stations have an opportunity to update the fuel prices in Tirunelveli without requiring human interventions. On the other hand, the non-automated stations will do it manually. Once the revision is done at 06:00 a.m., the oil marketing corporations will upload the reviewed price.

Characteristics of Dynamic Fuel Pricing

The movements in crude oil prices and the currency conversion ratio are quickly transmitted to fuel users in the city of Tirunelveli.

The management of inventory cannot be a problem for fuel companies. So, the fuel users will not face stock-related issues.

The biggest benefit of this system is that it enables the OMCs to minimize the capital required to manage regular business activities.

Options to Trace Today’s Diesel Price in Tirunelveli

Indian Oil Company: Indian Oil Company provides fuel consumers with an opportunity to get the latest diesel price in Tirunelveli through SMS services. Consumers require sending an SMS to 9224992249. They can also visit the website, which is iocl.com. The company also offers a mobile application called Fuel@IOC.

BPCL: Bharat Petroleum Corporation Limited also provides an SMS facility. Fuel consumers just need to send an SMS to 9223112222. The mobile application provided by this company is called SmartDrive.

Assessment of Diesel Price in Tirunelveli

Crude Oil Cost: Diesel is extracted from crude oil. In India, crude oil is bought from oil exporting nations. The price of unrefined oil is remitted in terms of dollars. In March 2018, the price of a barrel of unrefined oil has jumped to $65. Further, it will be converted into Indian rupees.

Excise Duty: The excise duty on diesel per litre has been revised to Rs.15.33 a litre. It is commonly levied across the states. In November 2014, the excise duty on diesel was Rs.3.46 a litre. After three years, it increased to Rs.17.33 a litre. Further, the Central Government reduced it to Rs.15.33 a litre in the month of February 2018.

VAT: The complete full form of the VAT is the Value-added Tax. It changes from state to state. In Tamil Nadu, the VAT is 30%. The State Government of Tamil Nadu retains the right to change the VAT on fuels whenever required.

OMC Costs: OMCs are a primary stakeholder in the fuel sector. The imported crude oil goes through a complex process. OMCs incur costs at each stage of production. The total amount of OMC expenses is included in the final diesel price in Tirunelveli. According to computations, OMCs spend Rs.8 a litre on diesel.

Why are the factors affecting Diesel Rates in Tirunelveli?

This is an important section of this article. The factors, which affect fuel prices in Tirunelveli, can be clubbed into two categories: 1) internal factors and 2) external factors. Internal elements include the central taxes and the state taxes. If the state and central governments make any modifications in the existing tax framework, OMCs have to reset the diesel rate in Tirunelveli accordingly. Conversely, external elements include the INR-USD exchange value, the supply of crude oil in international markets, the demand for crude oil in overseas markets, the political stabilities or instabilities in oil-producing countries, etc. These factors impact the fuel prices in Tirunelveli in the end.

GST and Current Diesel Rate in Tirunelveli

Has the GST been implemented on diesel? The GST has not been levied on diesel and petrol as of now. It covers all categories of services and products, which are sold by merchandisers in India. The GST is indirectly paid to the government by consumers. It came into existence in 2017. The GST Council has kept diesel outside the GST with an objective to assure that neither the Central Government nor the state governments will lose the earnings. According to analysts, the current diesel price in Tirunelveli is expected to decrease by Rs.15-20 a litre if the GST Council Members levy the GST on the fuel. It is a tough call from the stance of the government.

Also Check Diesel Price in NearBy Cities of Tirunelveli

*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.

News About Diesel Price In Tirunelveli Today

Get Rs.0.50 off on Diesel if you Vote on the Polling Day

Concerned dealers are offering a special discount on diesel in all the constituencies across the country on the respective polling day. As part of the special discount, all consumers who vote on the polling day will get a discount of Rs.0.50 per litre on refilling their vehicles by showing their voting finger. The offer will be available at 58,000 fuel stations across the country and can be availed between 8 a.m. to 8 p.m. Ajay Bansal, the president of All India Petroleum Dealers Association stated that the move was taken to encourage the people to go and cast their vote.

It needs to be mentioned here that the decision to offer the special discount was taken by concerned dealers even though state-owned Oil Marketing Companies (OMCs) were opposed to it. The participating dealers will adjust the discount offered to the consumers from their dealer commission.

11 April 2019

Crude Declines as US Maintains Record Production

Global crude oil prices declined on Thursday after the US crude inventories inclined and as output levels in the country were at record levels. However, OPEC-led supply cuts and US’ sanctions against Venezuela supported markets. The US West Texas Intermediate (WTI) crude futures were trading at $53.84 per barrel, down by 0.3% or 17 cents compared to their previous settlement. International benchmark Brent Crude Futures were at $62.43 per barrel, declining by 0.4%, or 26 cents. US crude oil inventories inclined by 1.3 million barrels in a week that ended on 1 February. Currently, the U.S. is the world’s largest oil producer, ahead of Russia and Saudi Arabia.

The average weekly US oil production remained at record high of 11.9 million barrels per day it reached towards the end of 2018. In a move seen as to counter the rising US production and inventories, the OPEC has voluntarily cut supply to tighten the market and to increase the price of oil. The US sanctions on Venezuela’s oil company are expected to stop the sales of proceeds of 500,000 bpd of crude exports.

08 February 2019

Decreasing Crude Oil Prices Triggers a Rise in the Stock Price of OMCs

With the S&P BSE Oil and Gas Index is up by 2.15% at 13,851.27 at 11:27 AM on Wednesday, 14 November 2018. The President of the United States of America, Donald Trump, has urged the OPEC members not to reduce the supplies. Crude oil prices have dropped after that, OMCs have gained. The equity share prices of oil companies have seen a rise. The stocks of Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, Castrol India, Oil India and Natural Gas Corporation have risen by 8.34%, 7.31%, 7.15%, 3.20%, 1.5% and 1.25% respectively.

While the Bombay Stock Exchange Index was up by 38.71 points at 35,183.2, Benchmark National Stock Exchange Index was up 17.55 points at 10,600.05. 30 stocks were seen trading in the green and 20 stocks were observed trading in the red out of 50 stocks in the Nifty index. The most retailed shares on the Bombay Stock Exchange were JP Associates, Tyres and Suzlon, JP Associates, Reliance Communications, State Bank of India, Ambuja Cements, Ashok Leyland, Kwalitya and Ambuja Cements.

15 November 2018

Diesel Prices Have Increased Once Again on Monday

Stat-run fuel marketing companies have once again hike fuel prices on Monday, 3 September 2018 across all the four Indian metro cities. Fuel prices had touched their highest levels on 29 May 2018. When revised on Monday under dynamic fuel pricing on Monday, the cost of a litre of diesel stood at Rs.71.15 in Delhi, which is the national capital; Rs.74 in Kolkata, which is the capital city of West Bengal; 75.54 in Mumbai, which is the capital city of Maharashtra; and Rs.75.19 in Chennai, which is the capital city of Tamil Nadu. Both petrol and diesel prices have been mounting since 16 August.

According to Dharmendra Pradhan, Oil Minister, fuel prices in the country have soared owing to external aspects. He said that Organisation of the Petroleum Exporting Countries, OPEC, had assured to enhance the fabrication of petroleum by 1 million barrels a day, but they failed to keep their promise and countries such as Venezuela and Iran are facing crises. The minister further said that the transnational currencies have dropped versus the USD and there exists a pressure on petroleum prices owing to a drop in petroleum production.

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